Brownstone Housing, the San Francisco startup that rents 26 sleeping pods for $700 a month at 12 Mint Plaza, is facing eviction after its landlord sued for more than $150,000 in unpaid rent. The suit was filed last week, according to court records reviewed by local media. The company is also accruing daily penalties of up to $1,000 from the San Francisco Planning Department for allegedly failing to secure a building permit, continuing to advertise pods online and withholding an updated tenant roster. The enforcement actions come less than a year after Brownstone won city approval to operate the dorm-style units following an extended dispute over zoning and safety rules. Chief Executive Officer James Stallworth said he has begun talks with the landlord and acknowledged the firm “could have done better” in responding to rent notices. He added that the startup underestimated the regulatory challenges associated with converting commercial space into residential use. If Brownstone cannot resolve the rent and code-compliance issues, the pods—promoted as an affordable alternative in one of the nation’s costliest housing markets—could be shut down, leaving current occupants searching for new accommodations.